JPY Reverse Carry

Thesis

A directional yen-strengthening strategy that sells the USD/JPY-linked xyz:JPY perpetual when a confirmed downward trend appears.

Strategy

• Confirmed downtrend: Enter only when the fast average is below the slow average by a band and recent USD/JPY decline exceeds momentum and round-trip cost thresholds. • Sizing: Size against allocated USDC and a modeled stop-risk budget, and never average down. • Exits: Exit on a price stop, profit target, trend reversal or holding-time limit.

Exposure

• Holds: USDC and a JPY short — The position benefits from a lower USD/JPY reference price and otherwise waits in allocated USDC. • Venue: Hyperliquid xyz:JPY — Terminal must fund and activate the session, which runs until stopped. • Leverage: None — Entry notional is at most 25% of allocated USDC by default, capped further by the stop-risk budget. • Costs: Fees and funding — Fees and adverse funding can cause losses; the funding estimate assumes the current rate persists through the holding limit. • Data: Circuit — The contract direction was checked against the issuer specification; runtime uses Circuit data only. • On unwind: Exposure closes — It attempts to close all its exposure on stop.